RBS consent to let & new mortgage - advice please 31 December 2012 at 2:59PM edited 10 January 2013 at 7:51PM in House buying, renting & selling 9 replies 6.6K views

2bsmart

Solved thank you for your help much appreciated

Thrugelmir

Did you ask the terms on which RBS will allow you to switch to consent to let?

A 90% LTV mortgage could result in you paying a high rate of interest. Selling your own property to inject the equity might be worth considering.

2bsmart

Our interest rate on our current property is 6% and the interest on this new property is 6.6% (I think), repayments are £997 PCM. We are happy with this and although high we are getting a great deal on the current property (a friend wants to downsize op but needs to go now).
Although we could get a better rate we would like to try and keep our first house and hopefully change to buy to let once current mortgage is up. Also the chances if we put it on the market it may take a long time to sell and with two growing kids we need more space.

Do you think that rbs underwriters will take our first mortgage repayment as a debt to income ratio? We were blissfully unaware of underwriters and now after googling are convinced they will decline even though we have agreement in principle.

Many thanks for your speedy responce

2bsmart

Rbs haven't asked anything in regards our consent to let just that we pay a £100 admin fee, when I spoke to them on the phone they didn't seem overly bothered about LTV or rental income.

brit1234

Will base rates at 0.5% and you paying for two mortgages at over 6% it seems to me that you are very exposed. Have you got 20-25% equity in your consent to let property for a buy to let mortgage.

If prices fall or mortgage rates go up you will be in trouble. Best sell your old property and plough any equity into new one.

Dockside

This is my first time replying on here, so your first post my first reply!

From experience, used to be a mtg underwriter (although obv diff companies do vary) but I'd say u should be ok. Your income covers it, you have the deposit, and if they have indicated they just want the BTL to self fund then it sounds ok. Like prev post said RBS might change your rate on current deal as you're asking for consent to let but you have lots of positives, not an inc stretch on new main res, bank relationship etc.


Fingers crossed I'm sure it will be fine.

2bsmart

Thank you for your speedy responses,
Our interest rates are high but we are currently over paying our mortgage and still plan to. If we get this mortgage and move if rental was empty we would still have 50% of our monthly income. We may decide to sell once our current mortgage rate is up but as things are slow at the moment we would like to try and keep it.

Dockside- thank you for your insight, it has made me feel a little better (born worrier). We are very thrifty with our money and have been completely renovating our house and still attempting to save £1000 PCM (amount of new mortgage). Thankfully new house need no work, so we should still manage to save a good bit when /if this house is rented.

Fingers are firmly crossed, got past mortgage in principle worry and onto the underwriter worry. It never ends. Lol.

2bsmart

They do say buying a house is stressful but it's the waiting that's getting me. Lol

BigG10

2bsmart wrote: »

They do say buying a house is stressful but it's the waiting that's getting me. Lol

Im a worrier too and going through exactly the same thing as you. Waiting for our house to let out. Waiting for the underwriter to approve new mortgage. ARRGGGGHH

2bsmart

Just to update for anyone who might be hunting for info in the future. We heard today from bank that we have mortgage offer subject to mortgage valuation. This has been instructed and is happening Monday, ironically carried out by the same company as did the pre sale survey and valuation.

Things looking positive. Yippee!